ORGANISATION AND METHOD STUDY (O & M Study)

Definitions

1. O &M study is a Systematic examination of an organization's structure,

procedures and methods, and management and control, from the lowest
(clerical or shop-floor) level to the highest (CEO, president, managing
director). Its objective is to assess their comparative efficiency in achieving
defined organizational aims. O&M concerns itself mainly with
administrative procedures (not manufacturing operations) and employs
techniques such as operations research, work-study, and systems analysis.
2. Organisation & Methods originally came from the pioneers of scientific
management ( Taylor and Gilbreth). Their work influenced the early
approaches and establishment of the function. Organisation & Methods,
commonly known as O&M, is defined as: the systematic examination of
activities in order to improve the effective use of human and other material
resources.
3. The term “O & M” can be described as the activities of the group of people
in the government or other public bodies or in private firm, who are asked to
advise administrators or managers on questions of organisation and method
so as to increase the efficiency of the worker, of the work for which the
manager is responsible—either by providing a better service, or a cheaper
one, or both.
4. O & M is essentially it is a specialist function that has a primary objective
of improving an organisations efficiency and control.
5. A continuous checking of office work at every stage and continuous research
for the improvement and simplification of office methods is collectively
known as Organisation and Methods or O & M study. Office Work Simplifi-
cation is the American name for what is known as O & M study.
6. In recent years there has been a tendency for the O&M function to be
rebadged as, for example, Business Improvement, Business Analysis,
Project Management, Process Improvement or Internal/Business
Consultancy.
7. As a productivity improvement step, Method Study helps to produce the
same output using fewer resources or to produce more with proportionately
less inputs

Role of Method Study:

Role of Method Study is:

a) To appraise the purpose and objectives of the organization

b) To assess the tasks of the organization
c) To evaluate the communication and control structure of the organization
d) To optimize the use of resources of the organization
e) To improve procedures, methods and processes of the organization
f) To ensure individual and group effectiveness and, as well as, work
satisfaction in the organization

Importance and Objectives of Organisation & Method Study:

The primary objective of Method Study is to find better ways of doing things.

To clearly state the importance or objectives of Method Study, it’s good to

evaluate its benefits to the organisation namely:-

1. Review of corporate objectives and mission

2. Review of plans and the programmes
3. Evaluation of tasks, targets and available resources
4. Improved efficiency by eliminating unnecessary work, avoidable delays and
other forms of waste.
5. Balancing the structure of the organization
6. Introduction of a good communication system in the organization
7. Better design of plants and equipment
8. Simplification of processes and methods
9. Standardization of products and procedures
10.Improvement of workflow
11.Planning and control of work
12.Managing resources, inventory control and replacement of plants and
machineries
13.Quality and cost control
14.Improving the layout of the office and shop floor
15.Better working environment and working conditions
16.Optimum utilization of resources
17.Higher standards of safety, security and health
18.Performance satisfaction.
19.It brings about a consciousness in the staff.
20.Elimination of waste in all activities.
21.Improvement of service rendered by the office work.
 22.Codification of the procedure of work. (the action or process of arranging
laws or rules according to a system or plan)
23.Improvement in accuracy.
24.Improvement in the flow of work.
25.Reduction in fraud
26.It ensures creativity and innovation
27.Optimal decision-making power, good organization practices and better
communication.
28.Reduction of unnecessary paperwork

Definitions of terms

Operations research (OR) is an analytical method of problem-solving and

decision-making that is useful in the management of organizations. In operations
research, problems are broken down into basic components and then solved in
defined steps by mathematical analysis.

System analysis as "the process of studying a procedure or business in order to

identify its goals and purposes and create systems and procedures that will achieve
them in an efficient way.

STEPS IN AN ORGANISATION AND METHOD STUDY

When an O & M team is conducting a study, there is an organized procedure that is

followed. It involves the following stages.

1. Terms of reference of the study (TOR)

The team must be mandated to do the assignment. This explains who has appointed
the team and the scope of what they have to study in terms of the content scope,
geographical scope, and time scope. Eg the study of forms used in the procurement
section at Moi Avenue branch. From the 13th -16th of August 2018.

2. Determination of the objectives of the study

This involves determining the aims/ the desired results after the study. The
objectives will be determined by the existing problem that has prompted the study.
Eg to reduce the amount of paperwork used in the procurement section.

3. Planning of the study

This involves coming up with a work schedule showing the work to be done, the
methods of data collection that will be used, and time duration for the study.

Example of a work schedule;

Morning session Afternoon session

Monday Observation Scrutinize records
Tuesday Observation Questionnaires
Wednesday Interviews Focus group discussion

4. Collection of data as per the methods indicated in the workplan.

5. Analysis of the data collected

Analysis may involve having a check-list of important questions for example;

 What activities seem to be time consuming?

 Does the work involve too much movement?
 Is there unnecessary paperwork being used?

6. Conclusions are drawn from the analysis and a new system or method is
developed.

7. Recommendations are made to the head of department for approval of the

new system.
The manager of the department may approve the new method or suggest areas
where it needs adjustments so that it can be applicable to the department.

8. Implementation of the new method is done.

9. Measuring the effect of the changes and maintaining the new system.
The new method implemented need to be reviewed occasionally to ensure that it is
working as intended and that people do not revert back to the old system.

CHALLENGES OF AN O & M study

 1. Lack of adequate resources for the study; the budget allocated for the study
may be inadequate so team is not able to do a thorough study.
2. Lack of adequate time to carry out the studies; The team members will be
working in other departments and for this reason may not have enough time
to do thorough studies as well as undertake their expected daily duties.
3. The recommendations of the team may lack support from top management
and for this reason may not be will implemented.
4. The recommendations may not be implemented successfully because they
fail to fit with the old systems that are already in use.
5. Employees may resist the changes as they prefer working with the old
methods they are familiar with.
6. The team may not get adequate responses from the interviews and
questionnaires. Some respondents may give false information misleading the
team to draw wrong conclusions.
7. The team may lack adequate knowledge in the operations of the department
under study eg the team may study the accounts department and they are not
well familiar with the accounting procedures. This means they will not
analyze the information from a specialist point of view.

OFFICE ACCOMODATION

Before setting up an office, management has to decide on the best office

accommodation to have for its offices. Accommodation in this case refers to the
physical work environment and layout where the office will be housed. The
following factors must be considered in the selection of the best accommodation.

 Site and location of the office

 Freehold or leasehold occupancy
 Office layout
 Provision of health and safety

Factors to consider in the Selection of office location and site

 1. Nearness to customer/market: The office should be accessible to customers.
They do not like long distances to make business inquiries. The office
should be accessible to other parties who are in regular contact.
2. Availability of transport infrastructure such as roads, airports, railway, sea
ports, container terminals.
3. Availability of communication infrastructure such as telephones networks,
mobile telephone networks, post offices, internet, courier services.
4. Availability of financial infrastructure such as banks, foreign exchange
bureaus, insurance firms.
5. Availability of inputs for production and especially for organisations in the
manufacturing sector. Such resources include raw materials, labour, power
etc
6. Cost of space: Sufficient space should be available at reasonable cost for the
office at the desired location.
7. Availability of Space for future expansion, parking, loading and offloading.
8. Government laws: The selection of location should comply with
government laws and regulation. Local governments have enacted laws
governing business locations within their jurisdiction.
9. Competition ;- the office may be located nearer to competition or further
away from competition depending on the organizations competitive strategy.
10.Security of the office; most organizations will choose to operate in low
crime offices. Some organizations may desire to enhance their security in
various ways such as installation of surveillance cameras such as CCTV,
alarm systems, electric fences, erecting perimeter walls. Such organizations
prefer locations outside of the CBD.
11.Prestige of the organisation; offices located in upmarket areas are more
prestigious than those at the CBD.
12.Environmental regulations such as those of NEMA eg no offices should be
built on riparian land, and on marshy land.

Freehold and leasehold occupancy

Having decided on the office location and site management has to decide on the
type of occupancy to have. The organisation may be accommodated in freehold or
leasehold offices. Freehold occupancy refers to offices that are owned by the
business. This means the organisation has a freehold legal right to the property
such as title deed. Leasehold occupancy refers to rented offices. The organisation
as a tenant enters into a lease agreement with the landlord. The agreement gives the
tenant the right to occupy the offices for an agreed period of time and at an agreed
amount to be paid as rent per month.
Advantages of a freehold occupancy.

1. The organisation acquires a permanent accommodation

2. The office owned becomes as asset for the business and this can be used as
collateral security by the organization to get a loan in the bank
3. Any extra space that is not in use can be let out to tenants and the
organisation earns rent income.
4. The organization has freedom of operations without any restrictions. For
example no restrictions on the opening and closing hours, types of business
to be conducted etc as would be the case with rented offices.
5. The organization has freedom to design its offices as it desires according to
its business needs and management style without any restrictions.
6. The organisation can buffer its security as desired eg perimeter fencing,
installation of electric fences.
7. Owned offices are prestigious and this helps to boost the organisation image
among its publics.

Disadvantages of freehold occupancy

1. It’s expensive to buy office space or build and office as it requires a huge
capital investment.
2. The organisation incurs the cost of paying government land rates and taxes.
3. It’s not easy to relocate to another site within a short notice.
4. The organisation incurs the cost of maintenances of the building such as
repairs, maintenance of the elevators, repainting and renovations, cleaning.
5. The organisation incurs the cost of security for the building such as payment
of security guards, luggage scanners, also the payment of insurance to cover
risks to the building such as fire, theft, breakages and damages.
6. This office occupancy is not suitable for short time work such as project
assignments that may last for only a short period of time.

Advantages of leasehold occupancy

1. It’s cheaper to rent offices in the short term than buying owned premises
2. Relocation to other sites is easier
3. It’s possible to acquire occupancy in upmarket areas which would be highly
expensive to buy.
4. This occupancy is suitable where any office is required for only a short
period such as project work.
 5. The organisation as a tenant does not incur the costs of maintenance of the
building such as repairs and repainting.
6. The tenant does not bear the costs of paying land rates and taxes to the
government for the offices they occupy.

Disadvantages of leasehold occupancy.

1. The organisation does not have permanent premises but only a temporary
accommodation.
2. The property owner may have restrictions on operations in the building such
as the opening and closing hours, inflow and outflow of customers, type of
business conducted etc
3. The organisation may be given a notice to vacate the building.
4. The organizations activities may be interrupted by other tenants in the
building eg noisy offices or offices with a lot of customer traffic.
5. The organisation may lack freedom to design its offices as it desires.
6. In the long term paying of rent becomes uneconomical and more expensive
than buying its own space.
7. The organisation may be inconvenienced by the actions of the landlord eg
the landlord may become bankrupt and the building has to be auctioned.

Layout of the office

Once office space has been acquired whether owned and rented, management has
to make the decision on the type of layout to have. The layout of the office refers
to the physical arrangement of the floor plan. Management may choose to be
accommodated in open or enclosed offices.

Open plan office

This refers to a big room or hall in which all departments are accommodated or
housed. In this layout there is no partitioning of the office rooms.

Advantages of the open plan office

1. The layout is cheaper as it saves on cost of partitioning.

 2. Supervision is easier. The manager is able to see all employees at a glance as
there are no partitions.
3. Sharing of equipment between departments is easier. Eg a photocopier may
be placed at a central place where it can be accessed easily by all
departments.
4. It saves on costs of heating and lighting eg one bulb may be adequate to
light up a large area therefore not many bulbs will be required. One air
conditioner may be adequate to regulate heat in the entire office.
5. It facilitates easier workflow in accordance with the straight line principle of
work flow.
6. It promotes team spirit in the organization. Staff feel that they are part of
one another as they are being accommodated in the same office
7. It discourages corruption and sexual harassment in the office.
8. The plan minimizes unnecessary movements in the office because
departments doing related work are placed next to each other.
9. It’s easier for staff to locate one another in open office than in enclosed
offices.
10.It’s easier to move equipment and furniture in an open office.
11.Open offices are much easier to landscape.

Disadvantages of open office

1. These offices tend to be noisy due to ringing phones, clatter of machines,

conversations between workers and with visitors to the office.
2. It may encourage the spread of communicable diseases such as flu, TB, skin
diseases, chicken pox etc
3. Managers may be demoralized because of having to share the same room
with their juniors.
4. These offices are not suitable for work that requires privacy and
confidentiality such as cashiers office, wage and salary processing,
counseling and legal work.
5. These offices are not suitable for work that requires silence and
concentration of mind eg statistical calculations, creative writing of articles,
and design of art work.
6. These offices may encourage insecurity in the office when staff leave their
desks unattended eg theft of office equipment, tablets, laptops, documents
and personal items of the staff such as mobile phones, wallets etc.

Enclosed/partitioned/ private offices

In this layout every department is accommodated in its own room. Signs are put on
the doors to help locate the departments.

Advantages of partitioned/enclosed offices

 They are suitable for work that requires privacy and confidentiality
 It’s suitable for work that requires concentration of mind such as statistical
calculations.
 It ensures security of equipment, documents and personal items of the staff.
This is because staff can lock their rooms as they leave.
 Its boosts the self-image of executives because they have their own private
rooms.
 It’s considered prestigious and makes the office to look neat.

Disadvantages of enclosed offices

 Supervision of staff is not easy especially where a manager has to supervise

groups in different rooms.
 The layout tends to be expensive because of costs involved in partitioning.
 The layout occupies a lot of space because space allowances must be made
to allow for partitioning.
 It may encourage corruption and sexual harassment in the office.
 Sharing of equipment between departments is not easy.
 It encourages a lot of movements in the office as people move to and from
other rooms to pick and drop work.
 It’s costly in terms of duplication of equipment sot that each room can have
its own such as printers, photocopiers, air conditioners and fans.
 It may discourage team spirit and teamwork as staffs tend to identify
themselves with only those of their department and consider the others as
outsiders.

Landscaped offices

Landscaping of an office refers to all efforts that can be made to bring nature to the
office. The idea of landscaping started in Germany after a group of researchers did
a study and found out that when people connect with nature. It helps them relieve
their physical and emotional stress. They therefore advocated for office
landscaping so that staff can get this connection with nature even as they work in
their offices.
Features of a landscaped office

Both the open and partitioned offices can be landscaped. Open offices are easier to
landscape as there is more room to place the landscaping items. A landscaped
office may have the following features.

 The entire floor would be carpeted to reduce noise.

 Air conditioners may be used to create a fresh breeze in the office and
regulate heat.
 Flower and potted plants may be brought to the office.
 Art work about nature may also be brought to the office for landscaping eg
paintings of natural sceneries, wall hangings, sculptures etc
 Fish aquariums and water fountains may also be used.
 Stuffed artificial animal skin that looks almost like the real animal may also
be used eg that of a leopard, heads of animals such as gazelles, buffalos etc
 Cool piped music that is instrumental and with accompanied natural sounds
such as singing birds, noisy insects, ocean waves, waterfalls etc
 There should be a rest area where staff can relax and have refreshments.

Provision of health and safety

Management has to ensure that the work environment does not expose employees
to risk of accidents and occupational diseases.

Health matters include all efforts made to protect employees from risk of diseases
at the work place. Safety matters refer to all efforts that would be made to ensure
that employees are not exposed to risk of body injuries due to accidents.

Health Provisions may include;

 Provision of good ventilation;- there must be wide widows that can open,
ventilation holes to allow inflow of air. Air conditioners and fans may also
be provided to promote circulation of air in the room. Dust filters may also
be fixed on the windows to filter dust from outside.
 Provision of proper heating; - heat should be regulated at work place to
ensure that the temperatures are not too high or too cold. There should be
wide windows that can open to let in cooler air. Air conditioners and fans
may also be used to reduce heat in the office. When temperatures fall, heat
can be increased by using heaters and radiators.
  Provision of good lighting;- light in the office should be moderate ie not too
bright as to cause glare, nor too dim or dull to cause eye strain. There should
be wide windows that can let in natural lighting. Light bulbs of moderate
brightness should be used. Coloured bulbs should be avoided in the office
except may be in the corridors or washrooms if desired.
 Regular cleaning and dusting of the office.;- the office floor should be
cleaned regularly with soap and water. Windows should be dusted and
cleaned regularly. Office equipment and furniture should be regularly
dusted to prevent accumulation of dust.
 Noise reduction;- noise in the office should be reduced to ensure a
conducive quiet working environment. Noise can be reduced in the
following ways;-
 Using beeps instead of ringing tones, mobile phones can be put on silent
mode.
 Floor can be carpeted to reduce noise as people walk or when furniture is
moved.
 Noise from banging doors can be reduced by use of door wedges, door
stoppers, and automatic door checks. Swinging doors and rotating doors may
be used where customer traffic to the office is large.
 Noisy machines and equipment can be segregated at their own location.
 Noisy equipment such as printers can have rubber of felt material placed
underneath to reduce the noise.
 Walls may be fitted with soundproofing material.
 Trees can be planted between the office and a noisy street to act as noise
breakers.

While making the office arrangement, the following objectives are to be

noted:

1. Office layout should ensure an effective, steady and smooth flow of work. A
straight line flow of work is preferred for the work will move forward from the
beginning to the end. It will increase the speed of work. There is less danger of
losing papers due to regularity. It will keep employees and executives at their
desks and check unnecessary movement of papers and enable maximum control.

2. The receptionist section should be near the main gate or entrance, so that the
customers may feel convenient and easy.

3. Preferably the different sections or departments of the office must be nearer to

each other, because the sections may be interconnected and one section cannot
work without seeking or referring to the other department. If the interlinked
departments are located far apart, much time is wasted to go over and come back.

5. The office of the Secretary or the General Manager or section-heads that

outsiders have to visit, may be placed near the receptionist’s room, so as to provide
easy approach.

6. While dividing the whole space, each department may be given adequate space
so as to enable the employees to work freely and move freely during the course of
work. As far as possible, any space of the floor should not be left out.

7. The office records, equipment, machines, etc., may as far as possible be kept in
their respective sections. This will facilitate to speed up the work. If the files or
machines are kept at a place, which is far off from his seat, the employee will have
to waste his time.

8. Certain sections such as interview section, enquiry section dealing with the
progress report of the staff, etc., require privacy. These departments or sections
will be provided with privacy by allotting separate rooms.

9. The position of the supervisors must be so adjusted that they can easily observe
the activities of their staff and watch whether they are engaged in work or chitchat.

10. The equipment or machines which make noise in their operations should be
placed away from the clerks, who do paper work. If space is not available, sound
proof walls or partitions must be erected to reduce the noise.

11. There will also be noise from external sources. If there is much disturbance,
double- glazed windows and doors may be fixed.

12. Adequate facilities must be provided to the executives and the staff to work in
comfort. The facility may also refer to systematic arrangement of furniture and
good atmosphere.

13. There must be sufficient, natural or artificial light.

PRINCIPLES OF OFFICE LAYOUT

 Inter-department relationships;-Departments doing related work should be

positioned next to each other. Offices that render service to all should be
 located centrally. Departments dealing with outsiders eg customers care
department should be located near the entrance.
 Flow of work;- work flow design should be efficient preferably on a straight
line, circular or U-shape design.
 There should be maximum utilization of floor spaces without any wastage
 Space requirement for staff and equipment.;- adequate space should be
provided between the desks to allow free movement. Congestion will reduce
efficiency of the staff. Furniture and equipment must be positioned for ease
in cleaning and servicing.
 Effective supervision:- employees should face the supervisor.
 Uniform appearance of the office;- furniture and equipment should be
uniform for the office to look neat and to have a good image.
 Office systems and procedures;- placement of employees should fit with
office systems and procedures in the organisation.
 Proper lighting;- light should be received from the left hand downward on to
the workers desk.
Office Systems and procedures
An office has its own system to do office work. The reason is that volume of work of an office
differ from another. System means a preplanned approach to do the day to day work to achieve
the desired objectives of an organization. According to Terry, a system is a network of
procedures which are integrated and designed to carry out a major activity

Three factors are involved in doing office work. They are persons, forms and equipment. Hence,
right types of persons should be selected. The standard forms are used to do the office work very
effectively. The selected equipment should be standard one.

Meaning of Office System

Office system means planning of an office work systematically to achieve the main and
subsidiary objectives of an organization within minimum efforts and costs.

An office system can be defined as an orderly arrangement of whole activities of an office and
framing of procedures to be followed for the effective and economic performance of work.

Procedures are simply defined as the processes employed to complete specific tasks, such as how
an invoice is entered in the system or how returns are processed.

Examples of work procedures;

 Leave application procedure

 Recruitment procedure
 Disciplinary procedure
 Procurement procedure
 Claims processing procedure
 Grievance procedure
 Registration procedure
 Air ticket booking procedure
 Renewal of license procedure
 Visa application procedure
 Procedures for reimbursement of fund
 etc

Need or Importance of Systems and Procedures

An office system is based on the nature of work performed and the extent of inter-linking among
them. So, office system is required to achieve the following objectives.

1. Improve Operating Efficiency: Office system helps to avoid unnecessary motions there by
improve the efficiency in the performance of work.

2. Maintain Uniform Procedure: Uniformity is maintained in the collection of dues from the
debtors. Whenever, a default is made by the debtor, the same practice is followed while
collecting the amount from them.

3. Optimum Utilization of Resources: The available resources of an office are equipment, (like
computer) personnel, space, furniture and the like. These resources are properly utilized for
performing office work in a planned and systematic manner.

4. Reduce office Expenses: Unnecessary motions are eliminated and standard automatic
equipment and machines are also installed in an office. In this way, the office expense is reduced
to some extent.

5. Minimize the Operating Expenses: Standard or maximum limit i» fixed for each and every
type of expenses. The actual expenses can be measured and compared with standard». Necessary
steps can be taken to minimize the operating expenses, if needed.

6. Fixation of Responsibility: Works are assigned to the office personnel specifically. In this
way, the responsibility is fixed for satisfactory performance.

7. Facilitating the introduction of new checks: Sometimes, duty lists can he prepared for office
personnel separately and also included in the office manual. This process facilitates the
introduction of new check system.

8. Achieving Organization Goals: The performance of any work leads to achievement of

organization goals. Here, well designed office system helps to achieve organization goals in a
better way.

9. Simplify the training: Office system clearly indicates degree of skill required to do a job. The
result is selecting the best training requirements of office personnel.

10. Errors Reduced: A good office system can reduce the chances of errors and improve the
overall efficiency of an organization.

11. Smooth Running of an Office: Delays and bottlenecks in the performance of work are
reduced with the help of good office systems.

12. Prevention of Fraud: Office system includes internal verification or internal checking.
Internal checking assists to prevent the frauds and exercise better control over work.
13. Better Coordination: Coordination is necessary among various sections or departments. The
required coordination can be arrived by having good office system.

Principles of an Office System

General principles of office system are;-

1. To avoid any interruption in the smooth running of office work.

2. To avoid duplication of work and records.
3. To avoid unnecessary movement of persons.
4. To avoid unnecessary writing.
5. To avoid using unnecessary forms/ paperwork
6. To make the best use of specialization.
7. To adopt labour-saving machines.
8. To minimize the writing work of the staff.
9. To apply the principle of management by exception
10. To have simple, economic, efficient and practicable system and procedure.
11. To avoid unnecessary checking or verification.
12. To use simple forms to be filled in.
13. To avoid use of machines for personal gains eg fraud
14. To increase the efficiency of the office work.
15. To achieve goals at the minimum cost.

When there is a system established and over the period of time if everybody in the office follows
the system, it becomes a procedure of the office. “Office procedures are thus a series of steps to
be taken for doing a particular work in the office as per the office systems.” For example, the
recruitment of the office staff is to be done on the basis of a planned system.

Characteristics of Office System are;

1. Office systems should be inter-related parts operating in a sequence and not isolated actions.

2. Office systems are concerned with the method of work in the office.

3. They should aim at achieving the goal of an enterprise.

4. They are concerned with the place and the time of performance of work in the office or any
part of the enterprise.

Importance of Office System:

1. If the office staff has to be trimmed adequately, then it is imperative to have a good office
system.
2. The common error caused by an employee can be reduced to a large extent if the system is
proper, and established in the office.

3. Frustration, delays and blockage of the office work is reduced if there is a good office system.

4. To ensure that there is proper coordination, control and supervision in an office, it is necessary
to have a very good office system.

5. Since there is a method involved in the system, it helps a job to move faster as the personnel in
the office know and follow the system.

6. A saving in labour and overhead is brought about if a proper system is established.

Advantages of Office System and procedures:

1. Liberation of Management:

A good system leaves the boss free to do what only he has to do he can plan, institute desirable
action, examine the result of that action, evaluate performance, institute improvement, delegate
with confidence provided that he will use the system to do about all the work which does not
requires his attention.

2. Avoidance of Delay and Bottle-neck:

Good system ensure smooth running of the office and thus all kind of delay and bottle-necks are
avoided. The work proceeds smoothly.

3. Elimination of Error:

Since a system is based on all proper analysis, chances of error gets eliminated or at least
minimised. This further adds to the efficiency of the machine.

4. Better Speed:

Speedy dispatch of work is possible as a system is based on the method of work employed and
not on mere whims and fancies of an individual worker or a manager.

5. Training to the Staff:

Office system make the training of the staff better and thus efficiency of worker in the office
improves. A few well-trained workers are better than an army of untrained workers.

6. Better Control:

System ensures better control of the work and, in turn, helps in eliminating frauds.
7. Better Co-ordination:

Proper coordination is a major aim of the system. Better coordination is possible through the
introduction of a system. This results in greater cohesion and efficiency. Bottle-neck is removed.

8. Economy:

A good system also saves on overhead expenditure and direct labour because method of work are
based on proper analysis and they are changed from time-to-time to meet the changing
environment of business.

9. Better form Design and Form Control:

As a good system aims at a better form design and control, the work efficiency of the office
increases and the unnecessary laggards get eliminated. This leads to greater efficiency in all the
departments of the enterprise.

Limitations of Office System:

In order to derive the maximum benefit out of the system, it could be essential to study their
limitations. These are;-

1. Limitation of Integration:

System must be integrated to achieve the system of objectives. System integration is a

formidable task and thus imposes a limitation on system that operates in various departments.
Certain systems have to be modified keeping in view the demand of other systems which operate
in the organisation.

2. Limitation of Planning:

Planning of system imposes a great limitation. A system will fail to produce results unless proper
planning is done.

3. Limitation of Cost:

The cost factor is one of the important factors while deciding upon the formulation and adoption
of the system. A system must be evaluated at the planning stage to judge its efficiency so that it
may bring about economy in the office instead of increasing overheads and direct labour cost.

4. Limitation of changes in the business

Change in the system must be made from time to time on the basis of current needs, which
imposes a great expenditure on the organisation.

5. Limitation of Strict Adherence:

Strict adherence to system all the time makes a system inflexible and unworkable. Thus it is
essential that a system should leave something to the discretion and judgment of the manager,
supervisor, and the subordinates.

METHODS OF STORAGE OF FILES

Once classifications of documents has been done and they have been placed in the files, they
have to be stored safely for future reference in decision making.

Different methods can be used for keeping the files namely,

 Lateral filing
 Vertical filing or suspension filing
 Horizontal or flat filing

LATERRAL FILING

This is a method of storage where the files are placed sid by side from front to back on lateral
shelves, cabinets and cupboards. The spine of the file, book or magazine can easily be seen on
the spine. This method is commonly used in many libraries. The method is suitable for filing
papers of A4, A5 and A3 sizes, magazines and books.

Advantages of lateral filing

1. Its time saving to locate a file and to return it back to its original position because its
name can easily be seen on the spine.
2. Less floor space is required because lateral cabinets and shelves do not occupy much
space.
3. It saves on cost of equipment because shelves and fitted wall cabinets are relatively
cheaper than the vertical drawers.
4. It causes less fatigue to the worker as there is no pulling and shutting of drawers.
5. It’s much easier to expand than vertical filing.

Disadvantages of lateral filing

1. It’s not suitable for confidential documents and especially the open shelves that are not
lockable.
2. Files may be exposed to physical damage such as dust, water that may splash when
mopping the floor, insects and rodents. This is mostly the case with open shelves that are
not lockable.

VERTICAL FILING
This is a method of storage do files in vertical drawers where the files are placed in a vertical
position lying on their spine in suspended pockets, for this reason the method is also called
suspension filing.

In order to locate a file inside the drawers guide cards or tabs are used which are placed on the
rail above the file. The guide cards also ensure that a file is returned back to its right position
once it has been borrowed out.

Advantages of vertical filing

1. It ensures safety and security of documents inside the drawers. Files are protected from
physical damage from water, dust, exposure to direct sunlight etc. the files also undergo
minimal wear and tear because they are safely suspended in pockets.
2. The method is suitable for confidential documents because the drawers are lockable
protecting the documents from unauthorized personnel.
3. The method makes the office tidy because once the drawers have been shut, no papers
can be seen. This makes the method highly prestigious.

Disadvantages of vertical filing

1. Vertical drawers occupy a lot of floor space because they are often wide so that they can
accommodate many files. Vertical cabinets must be placed in spacious rooms to allow
space for opening the drawers.
2. The method causes fatigue to the filing clerk because of the opening and shutting of the
drawers which are heavy loaded with files.
3. The method allows only for limited expansion because every drawer has a limited
capacity than cannot be exceed.
4. Vertical filing cabinets are more costly than shelves or lateral cabinets than can be fitted
on the wall. The expense of buying suspension pockets also makes the method costly.
5. Its time consuming to locate a file inside the drawers.

HORIZONTAL OR FLAT FILING

This method is also called flat filing because the files and documents are stored in a flat position.
Two methods can be used in flat filing;-

a) Files can be placed flat on tables forming a pile. Large documents such as posters, maps,
architectural drawings etc may also be placed flat on tables. Such documents are large
and cannot fit into ordinary A4 files for lateral filing.
b) Documents may be place flat in shallow drawers. These drawers are specially made for
keeping large document such as drawings or maps. Only a few documents will be
contained in the drawers’ one on top of the other. Alternatively the documents may be
rolled up, rubber banded and then placed inside the drawer one beside the other.
Advantages of flat filing on tables

1. It’s a cheaper method of storage of files.

2. It’s easy to locate a file as its name will be labeled on the spine.
3. The method is suitable for storage of large documents because they do not have to be
folded up in order to fit in lateral or vertical drawers. The fold and creases might spoil
the document.

Disadvantages of flat filing

1. Documents are easily exposed to physical damage.

2. It’s not suitable for storage of confidential documents.
3. It’s not suitable for protection and security of documents as files can easily be stolen
from the tables.
4. It can cause fatigue to the filing clerk when removing and returning documents of
files back to their position. This is mostly the case where the file is at the bottom or at
the middle of the pile.
5. Its time consuming to retrieve files from the pile.
6. The method is not prestigious therefore it does not boost the image of the
organization among its publics.

FACTORS THAT DETERMINE THE METHOD OF STORAGE OF FILES TO BE

USED

 Size of the documents eg drawings, photographs, maps, posters are usually large and are
better filed flat in shallow drawers or tables. Documents of size A4, A5 and A3 will fit
into files easily and can be filed laterally on shelves and cabinets or even suspended on
vertical drawers.
 Confidentiality of the documents; Confidential files should be stored in lockable
drawers or cabinets and not on open shelves.
 How often the file will be accessed; If the file is to be required frequently then it would
be better to keep it on shelves or lateral cabinets.
 ., example of such a file is the transaction file.
 Cost of filing equipment; the organisation will select the filing method that is affordable
according to their financial strength.
 Availability of floor space; If the floor space is limited the organisation may choose to
use lateral cabinets and shelves as they do not occupy a lot of floor space. Cabinets can
even be fitted on the walls to save on floor space which can be used for other purposes.
 Prestige of the organisation; An organisation that is concerned about good image and
prestige may choose to use equipment that is expensive and attractive.

THE OFFICE

An office is generally a room or other area where an organization's employees perform

administrative work in order to support and realize objects and goals of the organization.

General office -This deals with clerical activities, which are common to all operating
departments. The common services performed by a general office are eg mailing section, filing
section, reprography section.

The purpose of office work is to render efficient’ secretarial and clerical service’ to functional
departments such as production, purchase, sales etc.

The services provided by each functional office may be different. This may sometimes
necessitates complete decentralization of office work “However, this raises an important
problem. That is, in-charges of functional departments, who are specialists in the field of their
respective functions, cannot be expected to be specialist in the field of office management, say
for example, correspondence, filing, data-processing etc.

There are certain office services which are performed by all the offices which can be grouped
together and centralised at one place known as ‘central’ or ‘general’ office. Such services, which
can be centralized is as follows: (a few)

1. Typing and filing

2. Mailing
3. Data entry
4. Control of forms
5. Maintenance and repairs
6. Reprographic services
7. Reception of visitors/ front desk services
8. Secretarial services
9. Telephone operator services
10. Registration services
11. Messenger services

The above mentioned general services are required by all the functional departments directly or
indirectly. If such general services are carried out efficiently, they can make a considerable
contribution towards the efficiency of office management .But if such general services are ill-
planned, the efficiency of other department will be adversely affected
Functions of an office

1. Primary or basic functions

2. Auxiliary or administrative management functions

1. Primary or basic functions

An office basically performs those functions that are related to information management. It helps
in receiving, recording, arranging, analyzing and transmitting information

A. Receiving and collecting information

Receiving and collecting different types of information from the different types of sources is the
primary function of an office. The information is received from two sources. They are internal
and external. Letters, invoices, circulars, notices, memos are examples of internal sources and
supplier, customers, government, banks are examples of external sources.

B. Recording the information received

The information received is recorded into relevant records as evidence that it was received and
for future analysis for decision making.

C. Sorting and arranging information

The information received is arranged into different categories for easier dispatch to departments
for processing.eg all invoices will be put together for dispatch to accounts department.

D. Processing the information

It is the most significant function of an office. The information collected and recorded cannot be
readily used for the decision making unless it is processed. Processing will vary from one
department to another because of differences in the nature of work. Eg the way job applications
will be processed by the HR department differs from processing of invoices at the Accounts
department.

C. Dissemination of information processed

Information processed is dispatched to the users who may be internal or external audiences.

D. Retention of records

Retention is defined as the preservation of records for future reference. It involves collection,
preservation, classification and protection of records for future reference. It is maintained in files,
computers etc. Every record has a life span. It is protected according to its importance. Retention
of record depends upon nature of organization. The efficiency of office depends upon the way
records are retained

2. Auxiliary or administrative management function

A. Management process

To make any business successful there must be good management. Office helps in effective
management of other departments. It includes planning, organizing, staffing, directing and
controlling. It helps in smooth functioning of the organization.

B. Development of office system and procedure

Every office develops a definite office system and a fixed routine. It helps in smooth flow of
office work. The system is also known as procedure of office work.

C. Safe guarding the assets

All assets, movable and immovable, documents and office records must be guarded and
protected. They can protest these assets through insurance policies, locker etc.

D. Form designing and control:

An office designs, develops and prepares many types of form needed for office management. It
helps to get maximum benefits. These office forms are important tools for collection and storage
of information.

E. Purchasing stationery and supplies

Office stationery and supplies are essential for doing work. It helps in increasing the efficiency
and improving quality of works done. Office should pay attention in purchasing right type of
stationery and supplies

G. Purchasing office furniture and machine

Office requires various types of office furniture and machine for efficient performance. The
quantity, quality, consistency and completeness of work basically depend upon the ability and
quality if assets like office furniture and machine.

H. Personnel function

Office is also related to recruiting, training, placing, promoting the employees. Employees help
in the success of the organization.
Advantages and disadvantages of Centralization of office services

Centralization

Centralization in office can be defined as a process by which common office services or

functions are centralized at one place-General Office. Again, office functions common to all
sectional offices typing, filing, reprography etc, are physically concentrated in one department
known as ‘General Office’.

For example, if the reprography service is organized as a separate department no other

department is authorized to purchase its own reprographic machines. Under centralization, these
common services are not arranged in the sections offices. It is the duty of the general office to
provide the common services to all departments as and when they are required by them.

Centralization of office services is desirable because it fixes responsibility on persons to do

various jobs. It also avoids wastage and duplication of work and reduces cost of management.

Advantages of Centralization

The centralized arrangement of office services has the following advantages:

1. Duplication of work is avoided. It results in lowering the investment and maintenance cost of
office machine.

2. It is possible to bring specialization in the centralized department. It becomes feasible to

employ people with specialized knowledge. The efficiency and output go up and the cost of
office management is reduced.

3. The total volume of work can be distributed evenly among the central staff. Equitable
distribution of work load is possible. None will be over-worked nor will any-one sit idle.

4. The same type of machines and equipments can be used by all the employees and the
supervision leads to standardization of office procedures and methods.

5. It facilitates better and more scientific recruitment and training of employees.

6. It facilitates and ensures greater flexibility in the use of staff, machines and equipment.

7. Constant dealing with the same type of work makes “The worker specialized and thus
increases his efficiency and output and reduces cost of management.

Disadvantages of Centralization

The disadvantages of the centralization of office services are:

 1. The personnel in the central office unit may lack personal interest in the work of other
departments.

2. The work of a department may be of a confidential nature and there is no guarantee that its
secrecy will be maintained.

3. Centralization leads to frustration because of too rigid central control.

4. Work in the centralised office may be performed in that, order in which it is, received rather
than in the order of its importance. This may result into less of business because of delay in the
execution of orders.

5. Handling of mail, file, etc. is quicker in decentralized system than in a centralized system.

6. While writing correspondence or doing other work for the departments the central staff may
have to frequently refer paper back to the operating departments for clarifications. Thus there
may be greater delay in performance of work.

7. The technicalities of a particular department may not be properly understood by the general
office, resulting in frequent references, which lead to delay in the execution of work.

The advantages and disadvantages of Decentralization

Where an organization has its plants and offices at different locations, centralization of office
services cannot be practiced. In such cases, office activities have to be decentralized for their
efficient performance.

For example if the operations relating to handling of mail are performed by each department
separately it will be said that mail handling is decentralized.

Advantages of Decentralization

Centralization is neither possible nor desirable for all type of activities. Some activities can be
better performed departmentally because of the following advantages:

1. Secrecy of departmental affairs is well maintained.

2. Delay in performing the operation is avoided because it is performed at the department where
it is needed.

3. Staff attached to the department develops a sense of loyalty to it, and also develops personal
interest in the work.

4. Since a worker is working, in a functional department, work can be performed promptly.

5. Departmental employees are conversant with the problems of the department and have
knowledge of technicalities of the department. Therefore staff can perform the work more
quickly and in a better way.

Disadvantage of Decentralization

Disadvantages of decentralized arrangement are as follows:

1. The total workload of the office cannot be distributed among the personnel of different
departments.

2. The quality of work may be poor because of lack of specialization and specialized machines.

3. There will be duplication of efforts, equipment’s and machines etc., this leads to uneconomical
operations.

4. There may not be uniformity of office procedure followed in different department.

5. Standardization of the office procedure and equipment is not possible. The work may be done
in different departments in different way and with different equipment.

6. Decentralization creates problems of co-ordination of work among the different departments.

Complete physical centralization or decentralization is neither feasible nor desirable in a modern

office of a large scale business. Theoretically, centralising the office work is desirable because it
fixes responsibility under a capable executive, avoids duplication and permits better supervision
with a more even distribution of the individual work load.

In practice, the centralization is not practicable in pure form. Office work is made up of a series
of different activities such as filing, mailing, accounting etc. Again, some firms may have plant
at one place; the others may have throughout the country. In some concerns there is greater
volume of work as compared to others.

With all those variations the question of centralization or decentralization tends to become an
individual problem for each firm. Therefore, common and routine office services filing,
duplicating typing etc. are centralized in the General Office.

While separate staff is provided for individual departments for the performance of those
activities which cannot be centralized. A co-ordination of the activities of the functional
department is also affected by the General Office.

Office Management and Administration

Simply put, management can be understood as the skill of getting the work done from others. It
is not exactly same as administration, which alludes to a process of effectively administering
the entire organization. The most important point that differs management from the
administration is that the former is concerned with directing or guiding the operations of the
organization, whereas the latter stresses on laying down the policies and establishing the
objectives of the organization.

Broadly speaking, management takes into account the directing and controlling functions of the
organization, whereas administration is related to planning and organizing function.

With the passage of time, the distinction between these two terms is getting blurred, as
management includes planning, policy formulation, and implementation as well, thus covering
the functions of administration. Substantial differences between management and
administration.

Management Vs Administration

Comparison Chart

Basis for
Management Administration
Comparison
An organized way of managing people The process of administering an
Meaning and things of a business organization organization by a group of people is
is called the Management. known as the Administration.
Authority Middle and Lower Level Top level
Role Executive Decisive
Concerned with Policy Implementation Policy Formulation
Area of It has full control over the activities of
It works under administration.
operation the organization.
Government offices, military, clubs,
Profit making organizations, i.e.
Applicable to business enterprises, hospitals, religious
business organizations.
and educational organizations.
Who will do the work? And How will What should be done? And When is
Decides
it be done? should be done?
Formulation of plans, framing policies
Work Putting plans and policies into actions.
and setting objectives
Making best possible allocation of
Focus on Managing work
limited resources.
Key person Manager Administrator
Employees, who work for Owners, who get a return on the capital
Represents
remuneration invested by them.
Function Executive and Governing Legislative and Determinative

Definition of Management
Management is defined as an act of managing people and their work, for achieving a common
goal by using the organization’s resources. It creates an environment under which the manager
and his subordinates can work together for the attainment of group objective. It is a group of
people who use their skills and talent in running the complete system of the organization. It is an
activity, a function, a process, a discipline and much more.

Planning, organizing, leading, motivating, controlling, coordination and decision making are the
major activities performed by the management. Management brings together 5M’s of the
organization, i.e. Men, Material, Machines, Methods, and Money. It is a result oriented activity,
which focuses on achieving the desired output.

Difference Between Management and Administration

Definition of Administration

The administration is a systematic process of administering the management of a business

organization, an educational institution like school or college, government office or any
nonprofit organization. The main function of administration is the formation of plans, policies,
and procedures, setting up of goals and objectives, enforcing rules and regulations, etc.

Administration lays down the fundamental framework of an organization, within which the
management of the organization functions.

The nature of administration is bureaucratic. It is a broader term as it involves forecasting,

planning, organizing and decision-making functions at the highest level of the enterprise.
Administration represents the top layer of the management hierarchy of the organization. These
top level authorities are the either owners or business partners who invest their capital in starting
the business. They get their returns in the form of profits or as a dividend.

Key Differences Between Management and Administration

The major differences between management and administration are given below:

1. Management is a systematic way of managing people and things within the organization.
The administration is defined as an act of administering the whole organization by a
group of people.
 2. Management is an activity of business and functional level, whereas Administration is a
high-level activity.
3. While management focuses on policy implementation, policy formulation is performed
by the administration.
4. Functions of administration include legislation and determination. Conversely, functions
of management are executive and governing.
5. Administration takes all the important decisions of the organization while management
makes decisions under the boundaries set by the administration.
6. A group of persons, who are employees of the organization is collectively known as
management. On the other hand, administration represents the owners of the
organization.
7. Management can be seen in the profit making organization like business enterprises.
Conversely, the Administration is found in government and military offices, clubs,
hospitals, religious organizations and all the non-profit making enterprises.
8. Management is all about plans and actions, but the administration is concerned with
framing policies and setting objectives.
9. Management plays an executive role in the organization. Unlike administration, whose
role is decisive in nature.
10. The manager looks after the management of the organization, whereas administrator is
responsible for the administration of the organization.
11. Management focuses on managing people and their work. On the other hand,
administration focuses on making the best possible utilization of the organization’s
resources.

Conclusion

Theoretically, it can be said that both are different terms, but practically, you will find that the
terms are more or less same. You would have noticed that a manager performs both
administrative and functional activities. Although the managers who are working on the topmost
level are said to be the part of administration whereas the managers working on the middle or
lower level represents management. So, we can say that administration is above management.

Filing

Filing is a systematic process of classifying, storing and preserving written records for future
reference. It is essential for office management.

An office generates, receives and sends many documents everyday in the form of letters,
contracts, vouchers, bills, and reports. These should be properly recorded and stored. They
should be easily available as and when needed. Filing provides safe storage and quick location of
records. Filing is the basis of record management.
Purposes Of Filing
1. Collect documents; An office generates, receives and sends many documents everyday. The
purpose of filing is to collect all such documents.
2. Classify documents; The purpose of filing is to classify documents needing filing. They are
systematically arranged by one of the following methods: Alphabetical, numerical, subject,
geographical, chronological.
3. Store documents; The purpose of filing is to store classified documents in files. Related
documents are kept in one file. The files serve as memory of the office.
4. Preserve documents; The files are kept in drawers and filing cabinets. They are protected
from dust, insects, rats, water, fire and theft. Confidential documents are locked up.
5. Locate documents; Filed documents are readily available for use as and when needed.
Documents are needed for reference purposes. They are also needed to provide legal evidence in
case of disputes.
6. Provide information; Filing provides information for decision making, planning and control.
It also helps to formulate policies.
7. Fulfill legal requirements; Filing helps to fulfill legal requirements. Laws may require
preservation of certain documents such as employee records, legal records.

Qualities Of Good Filing System

Qualities make the filing system effective and efficient. A good filing system should
possess the following qualities:

1. Simplicity
A good filing system should be simple to operate. It should be easy to understand by employees.
2. Economical
A good filing system should be economical. It should not be expensive to install and operate.
The cost of files, folders, cabinets and equipment should not be high.
3. Compactness
A good filing system should be compact. It should have the ability to hold a lot of information
within very little space. It should not occupy too much office space.
4. Flexibility
A good filing system should be flexible. It should have capacity to change with the changing
needs of the office. It should discard dead files to make room for new files.
5. Safety
A good filing system should have safety. It should ensure safety of documents from insects,
water, fire, dust etc. It should preserve documents in good condition.
6. Accessibility
A good filing system should be easily accessible. It should not take much time to file new
documents and take out needed documents. It should allow easy location of the documents.
7. Cross reference
A good filing system should provide cross reference of records. It should help to locate a record
in more than one file.
8. Classification and indexing
A good filing system should be properly classified. It should have indexing. This is needed for
easy location of documents. Index provides location of the file. Classification groups the files.
Importance Of Filing

Filing is an important function of an office because of the following;

1. Protection of records

Filing stores documents in files and cabinets. It protects them from damage by insects, dust,
water, fire etc. Records can be preserved for long periods of time.
2. Ready reference
Files provide ready reference. Information is systematically arranged for future reference. Past
memory is available in files for making decisions in the present.
3. Legal evidence
Filing is important to settle disputes. The documentary records serve as legal evidence in case of
disputes. Files provide documentary evidence to settle business disputes. They also fulfill legal
requirements for preserving documents.
4. Efficiency
Good filing system increases office efficiency. Records can be located without delay. Replies
can be given promptly. Decisions can be made quickly. Timely actions can be taken. The
performance of office improves.
5. Planning and control
Filing provides information for formulating plans. Past information is needed to make future
forecasts. Filing provides information for control. It helps to monitor and correct performance.
6. Follow-up actions
Filing is important for follow-up actions. Past records help to take follow-up actions with
customers, suppliers, debtors, bankers and employees.
7. Image building
Efficient filing system builds image of the office. Letters are timely answered, complaints are
promptly handled, services are quickly provided. Quality employees are attracted to join the
organization. The goodwill of the organization increases.

Filing Classification
Classification of files refers to the process of selecting headings under which documents are
grouped or classified on the basis of common characteristics. It is done to file and locate
documents easily and quickly.

The bases of classification of filing are as follows:

1. Alphabetical filing

Under this classification, documents are filed according to the alphabet. The files are classified
according to name of persons or organizations. The documents are arranged in alphabetical
order.
Advantages

 It’s simple and easy to understand since workers have the knowledge of the alphabet
 There is direct filing therefore no need for a separate index
  Correspondence relating to the same organization is filed together

Disadvantages

 Time consuming to arrange documents alphabetically

 Difficult to locate in case of clients with common names
 This system does not work well with very large filing systems. With a large amount of
files the chance of duplicate names is great which can lead to confusion and increase in
retrieval time.
 Color coding is more difficult since you need to have 26 colors or combination of colors
to designate all the letters of the alphabet.
 Dealing with some of the rules of alphabetical filing is confusing. For example, does Mc
come before or after Mac?
 If confidentiality is an issue, having a person's name on the file may be a privacy
violation. In addition, chances are increased that an unauthorized person can find a
particular file.
 It is difficult to forecast space requirements for filing of different letters for planning
purposes since it’s not possible to know what the names of the new clients will be.
 Misspelling of the word may cause a misfiling under the wrong name.

2. Numerical filing

The files are classified according to numbers. Each file is given a separate number. The files are
arranged in numeric order. This is an indirect method of classification of filing. In this filing,
alphabetical index is required. The index includes name, address, phone number, subject and
other information along with file number. The method is suitable for organisations that have
large clientele. Eg bank accounts numbers, KNEC index numbers, KRA pin number. The
method is also suitable for filing documents that have serial numbers eg invoices, purchase
orders, receipts.

Advantages

 It’s flexible in expansion since it has unlimited room for expansion. Numbers go to
infinity.
 Clients who have similar names will be distinguished using the number of their file.
 It easy to plan for the future filing needs where number of clients is known.
 Suitable for large offices having large number of files and folders
 Accurate method of filing
 It ensures confidentiality of records

Disadvantages

 It is expensive due to the many files that are required. Each client has their own file.
 The cost of indexing is high. Separate alphabetical index is required.
 It is not easy to operate as sometimes it will require using the index to locate a file.
 Errors in filing may occur due to transposition of numbers eg 153 instead of 135
  Its takes long to file records as it involves two tasks ie checking the number of the
documents in the index, and then placing it in the correct file.

3.Alpha-numerical

This system combines alphabetical and numericl filing. The papers are filed alphabetically by
names or subjects. Each file is then allocated a number. If there are other smaller classifications
or sections of the main file, these will be allocated a number under the main file classification.
Example;
69 Accounts Dept
69.1
69.2
70 Human Resource Dept.
70.1 Recruitment
70.2 Training
70.3 Wage and Salary Administration

4. Subject filing

The files are classified according to subjects. Each subject is given a file. Files are arranged in
drawers according to alphabet of the subject. The tab of file contains subject of file. Guide cards
are used to separate files in sections. In this filing, subject must be arranged alphabetically. It is
widely used in those cases where subject is more important than the name of the person or
organization. All documents relating to same subject are filed together in one file.
Advantages

 Simple to operate where the subject is known

 Flexible in that a new subject can be introduced without affecting the existing subjects
 Easy to locate because in most of the times the subjects are not many.

Disadvantages

 Errors may filing may occur if the filing clerk doesn’t have enough knowledge of the
subject.
 Documents from the same client may be scattered into different files under different
subjects.
 Not applicable for filing miscellaneous subject
 Difficult to locate when subject matter is not properly understood

5. Geographical filing

The files are arranged according to geographical location in alphabetical or numeric order. For
example, county’s, regions, constituencies, municipalities and villages.

In this method, files are grouped according to the geographical location of firm, organization or
person. Under this method name of places are written in file and are arranged in drawer either in
alphabetical or numerical order whichever is suitable for organization. It used in multinational
companies or those organizations whose business and branches are located in many places of the
nation or the world.

Advantages

 Easy to understand and use

 Can be arranged in alphabetical and numerical order
 It used in those organizations whose business is engaged in correspondence with the
businesses all over the globe or the nation.
 Documents related to one particular area are held together and this assists when planning
for activities for the region

Disadvantages

 Time consuming to arrange documents alphabetically under the geographically regions.

 The geographical location must be known in addition to the correspondence name for
filing to take place.

6. Chronological filing

The files are classified according to dates of the calendar.

In this method, the oldest document is at the bottom and the most recent document is on the top
of file. In this method, files and folders of documents are arranged in an order of their date, day,
and time. They are arranged according to time and date when they were received and dispatched
eg purchase orders, invoices. It’s also used by offices where the data is important for their
activities eg registrar of births, hospital cards.

Advantages

 Simple to understand and easy to operate

 Quickly located if their dates are known.
 It’s useful where the date has special significance
 It has unlimited room for expansion, every new day has a new date.

Disadvantages

 There is a likelihood of congestion of documents under certain dates eg dates

corresponding to weekdays as compared to weekends.
 Document relating to a client will be put into different files when the transaction
occurred.

Centralized & Decentralized Filing

The document and records concerning a particular department of the business enterprise can be
filed either at the department itself or in any other central place. Thus, a business enterprise can
have either a decentralized or centralized filing system. Each system has its own merits and
demerits. We shall now discuss the features of the two systems, their merits and demerits.

Centralized Filing System

In a Centralized filing system, all the filing of the organisation’s departments is done at one
central location known as the registry. .

Merits of Centralized Filing

The following are some of the benefits of centralization of filing.

1. Superior equipment and costly mechanical aids can be installed and operated efficiently and
economically.
2. Experienced staff in small number is sufficient to handle the work. The skill and experience of
the staff would ensure maximum benefits.
3. Staff and equipment will be utilized to the maximum whereas in a decentralized filing, their
services cannot be fully utilized. Some departments have very little paperwork.
4. Supervision in a centralized system is more effective. Hence, chances for misfiling are
avoided completely.
5. The individual productivity would increase, as specialist staff would become experts in their
duties.
6. It is easier to cover for absent members of the staff because personnel in the section shall be
familiar with each other’s work.
7. A standardized filing system can be devised and put into operation. All the staff members in
the section would be well acquainted with the system.
8. Close control over works quality and the movement of documents is exercised.
9. Duplication of equipment and copies of records would be avoided.

Disadvantages of Centralized Filing System

The possible disadvantages of centralized system include the following:
1. If the filing staff are not adequately trained and have no specialized trade knowledge, it shall
lead to misfiling.
2. Since all the records are stored in one place the organisation becomes vulnerable.
Consequently, the risk of loss due to theft, fire etc. can be increased and the organisation may
lose all its documents.
3. There may be delay in making files available. Since the whole work is performed by a few
staff members, delay cannot be avoided. The workload will also be more.
4. Chances for misfiling will increase considerably. Misfiling will lead to unnecessary delay in
tracing out the documents and they cannot be produced promptly.
5. Where records are needed frequently by departments, centralization of files will cause much
inconvenience. This may also cause frequent delays.
6. Centralized filing would result in increased staff costs.
7. The central department often tends to become a repository of all unwanted and unnecessary
documents of all other departments.
8. Telephone enquiries cannot always be answered immediately if records are not on hand.
9. The real needs of the user department shall become secondary to the established routines and
regulations of the central filing department. Certain departments may find that the system of
classification of files adopted by the central library is not the best one for referring their records.

Decentralized Filing or Departmental Filing

Under Decentralized filing system, filing is done in each individual department independently. In
other words, each department makes its own arrangements for filing, install separate equipment
and the department staff themselves will look after this work. Therefore, filing equipment are
installed in each and every department. Hence, it is also known as departmental filing.

Merits of Decentralized Filing

1. This system ensures secrecy of documents and enables the individual departments to carry on
their work independently and effectively.
2. This system saves time. If any document is needed, it can be made available promptly without
any delay. This ensures quick action.
3. Specialized knowledge about the concerned departments will eliminate the chances for
misfiling. Thus safety of papers is ensured.
4. Since the papers are located within the same department they can be obtained at any time. The
staff members need not go to the central filing section and get the required file. Reference is thus
easy and quicker.
5. If various departments are geographically dispersed, departmental filing alone is suitable and
economical.
6. The department staff normally does the filing work themselves. Hence, additional costs for
appointing specialized staff for the filing department is avoided.
7. When chances for misfiling are more in the centralized filing system, decentralized filing is
the only remedy.
Demerits of Decentralized Filing
1. No standardized procedure shall be followed throughout the organization. The filing
equipment will not also be standardized. Consequently, confusion will prevail in the office. The
receiving clerk shall find it inconvenient in sorting out the incoming mail.
2. Additional space and equipment should be provided in each functional department. This factor
will increase the cost of filing operations.
3. When a paper or document is concerned with more than one department, copies of such
documents should be taken out and sent to various departments. This will result in unnecessary
duplication of work.
4. Advantages of specialization are not possible in a decentralized filing system. Usually, one or
two staff members in each department will look after this work besides their original work. Since
it is an additional workload, they will not perform filing operations effectively.
5. There will be no uniformity in filing procedure. Each department will adopt its own procedure,
which may be totally different to that of another.
6. Departmental filing lacks supervision. Therefore, control of filing becomes a difficult process.
Co-ordination will also become difficult.
7. Specialist filing staff cannot be appointed in each department due to the additional cost
involved.
QUESTIONS
1. You have been referred to design the layout of a new office that your organization
has acquired. Explain reasons why it’s important to come up with an effective office
layout(10)

Office layout refers to the physical arrangement of the floor plan, which may other be open or
enclosed office.

I. To promote and ensure an effective, steady and smooth flow of work. Good office layout
eases the overall activities of the organizations for example in reduction of time and
wastage and effort Imput.This in turn reduces the cost operations.
II. Effective supervision and control – employees are to be regularly guided and controlled.
The scientific/enclosed office layout provided guidance and assistance to improve their
current performance .The office manager is able to supervise the activities of employees
and departments in an easy and effective manner.
III. Proper utilization of floor space – office layout assures the optimum utilization of floor
space which in turn reduces operating office and administration costs. Office layout
makes proper arrangement for human and physical resources which helps to utilize floor
space
IV. Better use of office machines and equipment –office outlay increases utilization of
machines and equipment effectively which reduces the operating cost of office and
administration.
V. Gives favorable impression to customers and visitors- effective layout develops a positive
image of the office among customers and visitors. It makes outlook of office attractive
and impressive.
2. Your office is situated in one of the busy street in the central business street in
Machakos County, which exposes your stuff to noise pollution. Identity five
measures that should be put in place to minimize the effect of noise.
Noise especially in open concepts where employees are situated together in a large space
with little to no separation, is one of the most common complaints raised by employees
working in corporate office settings.
Too much noise can seriously reduce productivity and increase stress and lower
employee morale. The following solutions can be implemented to reduce noise in your
open office:
a. Noise friendly flooring - Hard flooring surfaces like natural wood and ceramic
can wreck havoc within work settings due to the massive amount of noise
pollution they create. Carpeting and vinyl/flooring are versatile alternatives thanks
to their ease of maintenance and variety of design options. They also boast sound
absorption qualities. Both are also easy to install and beneficial in minimizing
noise in my office.
b. Noise concealing headphones – purchasing a pair of high quality noise concealing
headphones may be an easy way to reduce noise in my open office space. Most
use special processing and microphones to reduce noise.
c. Control background noise – this simply implies fighting noise with noise.
Ambient (white) noise is played in the background at the consistent level to help
mask unwanted sounds (e.g d noise rainfall and waves crashing on the beach are
some forms background noise)
d. Plants, plants and more plants - well placed plants have proven effective in
reducing noise levels in an open office setting. The larger the plant means the
bigger the impact. This also means aesthetic benefits and overall impact on air
quality in the office.
e. Acoustic wall panels - Sound absorbing wall panels are incredibly effective in
combating noise pollution in the workplace
3.One of the features of a good office is that it should be safe explain the measures which
should be adopted in an office to ensure the safety of the board members of stuff and
customers.

i. Provision of good ventilation – there must be wide widows that can, open ventilation
holes to allow inflow of air. Air conditioners and fans may also be provided to promote
circulation of air in the room. Dust filters may also be fixed on the windows to filter dust
from outside.
ii. Regular cleaning and dusting of the office – the office floor should be cleaned regularly
with soap and water. Windows should be dusted to prevent accumulation of dust.
iii. Prohibition of good lighting – light in the office should be moderated; it should moderate
not too bright as to glare, not to dim to strain the eyes. The office should have windows
open to enable natural light.
iv. Floor should be carpeted to reduce noise as people walk or furniture is moved. Carpeted
floors also prevents causality office workers from falling and objects breaking
v. Trees can be planted between the office and a noisy street to act as noise breakers.